Respuesta :
Answer:
The total amount of dollar sales for the next period is $1,675,500
The number of units to be sold next period is 23,500
Explanation:
The sales less the total cost gives the pretax income. The costs are the fixed and variable cost. Contribution margin is the sales less the variable cost. Hence the pretax income is the difference between the contribution margin and the fixed cost.
Let the total sales in dollars be G
G - $430,000 - $970,000 = $275,500
G = $275,500 + $430,000 + $970,000
G = $1,675,500
Hence the total contribution margin
= $1,675,500 - $430,000
= $1,245,500
Let the total number of units to be sold be t
$1,245,500 /t = $53
t = $1,245,500 /53
= 23,500
Answer:
Total amount of dollar sales for next period is $1,675,500
Number of units to be sold next period is 23,500 units
Explanation:
The dollar sales next period is the total costs plus pretax income.
Total costs is summation of fixed variable costs and fixed costs, that $1,400,000($430000+$970000)
Dollar sales is $1,675,500($1400,000+$275,500)
However, the number of units sold can be derived by dividing total contribution by contribution margin per unit.
Total contribution margin is calculated thus:
Total sales $1,675,500
Variable costs ($430,000)
total contribution $ 1,245,500
Number units = 1,245,500/53
=23,500 units
